Senate Grills Warsh at Fed Chair Confirmation Hearing

Published 3 days ago

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Above: U.S. Federal Reserve chair nominee Kevin Warsh at a U.S. Senate hearing on April 21. Image credit: Graeme Sloan/Bloomberg/Getty Images

The Spin

Kevin Warsh is exactly the Fed reformer America needs right now. The central bank has spent decades overstepping its mandate, fueling asset bubbles and the worst inflation in 40 years, and Warsh has the experience and vision to rein it in. Confirming him is the best shot at returning the Fed to the disciplined, credibility-driven institution it was in the 1990s.

FOX News The Wall Street Journal

Given that he couldn't name a single disagreement with Trump's agenda when pressed, Warsh is clearly prepared to do Trump's bidding. Jerome Powell set the gold standard for Fed independence by standing firm against relentless White House pressure, and Warsh has shown none of that backbone. Handing Trump a Fed chair who auditioned for the job by echoing his talking points is a direct threat to the central bank's credibility.

The New Republic The New York Times

Metaculus Prediction

There's a 40% chance that the Federal Reserve will ever adopt a policy regime that implements nominal GDP targeting or nominal wage targeting, according to the Metaculus prediction community.